ENROLLED Page 1 of 7 CODING: Words in struck through type are deletions from existing law; words underscored are additions. ACT No. 330 Regular Session, 2013 HOUSE BILL NO. 661 BY REPRESENTATIVES WESLEY BISHOP AND BROSSETT Prefiled pursuant to Article III, Section 2(A)(4)(b)(i) of the Constitution of Louisiana. AN ACT1 To amend and reenact R.S. 17:3973(2)(a) and (b)(v)(aa), 3991(B)(1)(d) and (23) and (H),2 3995(A)(1)(introductory paragraph) and (c) and (4)(a) and (B), and 3996(C) and (G)3 and to enact R.S. 17:3973(2)(b)(v)(dd) and (vii) and 3995(A)(3), (H), (I), and (J),4 relative to charter schools; to create a Type 3B charter school; to provide relative to5 charter school funding including funding for Type 3B charter schools; to provide for6 the applicability of certain provisions to Type 3B schools including student7 enrollment, acquired assets, and budget submission; to provide that a Type 5 charter8 school shall be considered the local education agency for funding purposes; to9 provide relative to administrative fees charged to certain charter schools; to provide10 for rules adopted by the State Board of Elementary and Secondary Education; to11 provide for definitions; and to provide for related matters.12 Be it enacted by the Legislature of Louisiana:13 Section 1. R.S. 17:3973(2)(a) and (b)(v)(aa), 3991(B)(1)(d) and (23) and (H),14 3995(A)(1)(introductory paragraph) and (c) and (4)(a) and (B), and 3996(C) and (G) are15 hereby amended and reenacted and R.S. 17:3973(2)(b)(v)(dd) and (vii) and 3995(A)(3), (H),16 (I), and (J) are hereby enacted to read as follows:17 §3973. Definitions18 As used in this Chapter, the following words, terms, and phrases shall have19 the meanings ascribed to them in this Section except when the context clearly20 indicates a different meaning:21 * * *22 (2)(a) "Charter school" means an independent public school that provides a23 program of elementary or secondary education, or both, established pursuant to and24 ENROLLED HB NO. 661 Page 2 of 7 CODING: Words in struck through type are deletions from existing law; words underscored are additions. in accordance with the provisions of this Chapter to provide a learning environment1 that will improve pupil achievement. Nothing in this Chapter shall be construed to2 prohibit a Type 1, Type 1B, Type 2, Type 3, Type 3B, or Type 4 charter school from3 having a residential component.4 (b)5 * * *6 (v)(aa) Type 5, which means a preexisting public school transferred to the7 Recovery School District as a school determined to be failing pursuant to R.S.8 17:10.5 or 10.7 and operated as the result of and pursuant to a charter between a9 nonprofit corporation and the State Board of Elementary and Secondary Education,10 or between a nonprofit corporation and a city, parish, or other local school board or11 other public entity in the case of the renewal of a Type 5 charter of a school that has12 been transferred back to the jurisdiction of the local school board or other public13 entity pursuant to R.S. 17:10.5(C). The chartering authority shall review each Type14 5 charter proposal in compliance with the Principles and Standards for Quality15 Charter School Authorizing as promulgated by the National Association of Charter16 School Authorizers. Except as otherwise provided in R.S. 17:10.7 or 1990, and17 notwithstanding the provisions of R.S. 17:3991(B)(1), within such Type 5 charter18 school, only pupils who would have been eligible to enroll in or attend the19 preexisting school under the jurisdiction of the city, parish, or other local public20 school board or other public school entity prior to its transfer to the Recovery School21 District may attend. However, all such pupils shall be eligible to attend22 notwithstanding any other provision of this Chapter to the contrary.23 * * *24 (dd) A Type 5 charter school that is transferred from the Recovery School25 District to the administration and management of the transferring local school system26 pursuant to R.S. 17:10.5 or 10.7 and rules adopted by the state board shall no longer27 be determined to be failing and shall be converted to a Type 3B charter school.28 * * *29 ENROLLED HB NO. 661 Page 3 of 7 CODING: Words in struck through type are deletions from existing law; words underscored are additions. (vii) Type 3B, which means a former Type 5 charter school transferred from1 the Recovery School District to the administration and management of the2 transferring local school system pursuant to R.S. 17:10.5 or 10.7 and rules adopted3 by the state board. The local school board shall permit a Type 3B charter school to4 remain in the facility in which it was located at the time of transfer or shall provide5 the Type 3B charter school with another facility for use. Pursuant to rules and6 regulations adopted by the state board, the state board may require a Type 3B charter7 school to participate in unified processes common to other public schools located in8 the same parish or school district boundaries that are critical to providing equity and9 access to students and families, such as processes for student enrollment, expulsion,10 and transportation.11 * * *12 §3991. Charter schools; requirements; limitations; renewal; amendment; revocation13 * * *14 B. Each proposed charter shall contain or make provision for the following:15 (1)16 * * *17 (d) The provisions of R.S. 17:3991(B)(1) and (3) this Paragraph and18 Paragraph (3) of this Subsection shall not apply to Type 5 or 3B charters.19 * * *20 (23) Provisions regarding the security of the school. If a local school board21 provides security services for its schools then it shall make such services available22 to any of its type Type 1, 3, 3B, or 4 charter schools on terms as provided within the23 charter agreement.24 * * *25 H. Any assets acquired by a Type 1, 1B, 2, 3, 3B, or 5 charter school are the26 property of that charter school for the duration of that school's charter agreement.27 Any assets acquired by a Type 4 charter school are the property of the local school28 board. If the charter agreement of any Type 1, 1B, 2, 3, 3B, or 5 charter school is29 revoked or the school otherwise ceases to operate, all assets purchased with any30 ENROLLED HB NO. 661 Page 4 of 7 CODING: Words in struck through type are deletions from existing law; words underscored are additions. public funds become the property of the chartering authority. Assets that become the1 property of a local charter authorizer pursuant to this Subsection shall be used solely2 for purposes of operating charter schools. Charter schools are to maintain records3 of any assets acquired with any private funds which remain the property of the4 nonprofit group operating the charter school.5 * * *6 §3995. Charter school funding7 A.(1) For the purpose of funding, a Type 1, Type 3, Type 3B, and Type 48 charter school shall be considered an approved public school of the local school9 board entering into the charter agreement and shall receive a per pupil amount each10 year from the local school board based on the October first membership count of the11 charter school. Type 1B and Type 2 charter schools shall receive a per pupil amount12 each year authorized by the state board each year as provided in the Minimum13 Foundation Program minimum foundation program approved formula. The per pupil14 amount provided to a Type 1, 1B, 2, 3, 3B, or 4 charter school shall be computed15 annually and shall be equal to no less than the per pupil amount received by the16 school district in which the charter school is located from the following sources17 based on the district's October first membership count:18 * * *19 (c) The provisions of this Paragraph permitting the calculation of the per20 pupil amount to be provided to a Type 1, 1B, 2, 3, 3B, or 4 charter school to exclude21 any portion of local revenues specifically dedicated by the legislature or by voter22 approval to capital outlay or debt service, shall be applicable only to a charter school23 housed in a facility or facilities provided by the district in which the charter school24 is located.25 * * *26 (3) Notwithstanding Paragraph (1) of this Subsection, a district with one or27 more Type 3B charter schools shall distribute minimum foundation program formula28 funds to each Type 1, 3, 3B, and 4 charter school using the weighted allocations29 provided for in the most recently adopted minimum foundation program formula,30 ENROLLED HB NO. 661 Page 5 of 7 CODING: Words in struck through type are deletions from existing law; words underscored are additions. except that any school board in a parish that contains a municipality with a1 population of three hundred thousand or more persons according to the latest federal2 decennial census shall use the allocation method provided for in this Paragraph no3 earlier than the 2018-2019 fiscal year for all Type 1 and 3 charter schools authorized4 by the school board and in operation prior to the 2013-2014 school year. Until that5 time, those schools shall be funded as provided in Paragraph (1) of this Subsection.6 For all other Type 1, 3, and 4 charter schools in such a parish, the school board may7 request the use of a differentiated distribution methodology to be approved by the8 state Department of Education prior to implementation.9 (4)(a)(i) The state board, a local school board, and a local charter authorizer10 may annually charge each charter school they authorize a fee in an amount equal to11 two percent of the total per pupil amount as defined by this Subsection that is12 received by a charter school for administrative overhead costs incurred by the13 chartering authority for considering the charter application and any amendment14 thereto, providing monitoring and oversight of the school, collecting and analyzing15 data of the school, and for reporting on school performance. Such fee amount shall16 be withheld from the per pupil amount in monthly increments and shall not be17 applicable to any federal money or grants received by the charter school.18 Administrative overhead costs shall not include any cost incurred by the chartering19 authority to provide purchased services to the charter school. As provided by20 Subparagraph (b) of this Paragraph, a chartering authority or the Recovery School21 District, if applicable, may provide other services for a charter school and charge the22 actual cost of providing such services, but no such arrangement shall be required as23 a condition for authorizing the charter school.24 (ii) The state Department of Education may withhold and retain from state25 funds otherwise allocated to a local public school system through the minimum26 foundation program formula an amount equal to one quarter of one percent of the fee27 amount charged to a Type 3B charter school pursuant to Item (i) of this28 ENROLLED HB NO. 661 Page 6 of 7 CODING: Words in struck through type are deletions from existing law; words underscored are additions. Subparagraph for administrative costs incurred by the department for providing1 financial oversight and monitoring of such charter schools.2 * * *3 B. For each pupil enrolled in a charter school who is entitled to special4 education services, any state special education funding beyond that provided in the5 minimum foundation program and any federal funds for special education for that6 pupil that would have been allocated for that pupil shall be allocated to the charter7 school which the pupil attends. Any Type 2 charter school shall be considered the8 local education agency for the purposes of any special education funding or statutory9 definitions, while the local school board shall remain the local education agency for10 any Type 1, 3, or 4 charter school.11 * * *12 H. Any Type 1B, 2, or 5 charter school shall be considered the local13 education agency for funding purposes and statutory definitions pursuant to rules14 adopted by the state board.15 I. The local school board shall remain the local education agency for any16 Type 1, 3, or 4 charter school.17 J. A Type 5 charter school shall have the option to remain its own local18 education agency for funding purposes and statutory definitions upon conversion to19 a Type 3B charter school pursuant to rules adopted by the state board. Pursuant to20 this Subsection, the state board shall adopt rules for a Type 3B charter school21 considered its own local education agency and such rules shall:22 (1) Provide for the delineation of financial and programmatic obligations of23 the charter school related to the receipt of funds as a local education agency.24 (2) Authorize the state superintendent of education to rescind the local25 education agency status of a charter school should the charter school fail to meet the26 financial and programmatic obligations approved by the state board pursuant to this27 Subsection.28 §3996. Charter schools; exemptions; requirements29 * * *30 ENROLLED HB NO. 661 Page 7 of 7 CODING: Words in struck through type are deletions from existing law; words underscored are additions. C. A charter school established and operated in accordance with the1 provisions of this Chapter shall comply with state and federal laws and regulations2 otherwise applicable to public schools with respect to civil rights and individuals3 with disabilities. Any Type 1B, Type 2, or Type 5 charter school shall be considered4 the local education agency for the purposes of any special education funding or5 statutory definitions, while the local school board shall remain the local education6 agency for any Type 1, 3, or 4 charter school.7 * * *8 G. All charter schools established and operated in accordance with the9 provisions of this Chapter shall comply with the provisions of R.S. 39:1301 through10 1315. Each Type 1, 3, 3B, and 4 charter school annually shall submit its budget to11 the local school board that approved its charter, and such board shall submit the12 charter school's budget to the state superintendent of education in accordance with13 the provisions of R.S. 17:88. Each Type 1B charter school annually shall submit its14 budget to its authorizer. Each Type 2 and Type 5 charter school annually shall15 submit its budget directly to the state superintendent of education.16 * * *17 SPEAKER OF THE HOUSE OF REPRESENTATI VES PRESIDENT OF THE SENATE GOVERNOR OF THE STATE OF LOUISIANA APPROVED: